IMF says Pakistan made 'immense progress' under program ahead of review visit
Fund cites strong fiscal performance as talks set to focus on revenue and energy issues
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
International Monetary Fund spokesperson Julie Kozack speaks to reporters at the IMF's headquarters in Washington, U.S. September 28, 2023
The International Monetary Fund (IMF) said Pakistan has made immense progress under its program, with recent data showing the primary balance in line with Fund conditions. Upcoming discussions are expected to focus largely on revenue collection and energy issues.
An IMF staff team is scheduled to visit Pakistan beginning Feb. 25 for discussions on ongoing program reviews, IMF Communications Director Julie Kozack said Thursday during a press briefing.
“On Pakistan, we do have a program, as you noted, we have an EFF arrangement,” Kozack told reporters at a regular briefing. “We do have a staff team that is expected to visit Pakistan starting February 25 for discussions on the third review under the EFF and the second review under the RSF.”
The IMF is supporting Pakistan under a $7 billion Extended Fund Facility and a $1.1 billion Resilience and Sustainability Facility.
Program performance
Kozack said Pakistan’s policy efforts under the EFF have helped stabilize the economy and rebuild confidence.
“Fiscal performance has been strong,” she said, noting that Pakistan recorded a primary fiscal surplus of 1.3% of gross domestic product in fiscal year 2025, in line with program targets.
She added that headline inflation has been relatively contained and that Pakistan posted its first current account surplus in 14 years in fiscal year 2025.
Kozack also highlighted the recent publication of the IMF’s Governance and Corruption Diagnostic Report on Pakistan, which includes reform proposals such as simplifying tax policy design, leveling the playing field in public procurement and improving asset declaration transparency.
Upcoming review
According to Pakistan’s Ministry of Finance, an IMF mission led by Iva Petrova is expected to arrive on Feb. 25 to review implementation of the EFF and RSF programs. The nearly two-week visit, scheduled to conclude March 11, is expected to include discussions on budget proposals based on this year’s performance and to outline broad parameters for the fiscal year 2026-27 budget, particularly regarding provincial finances.
Officials said program performance through end-December, the review period, has largely remained on track despite a revenue shortfall. Authorities expect the shortfall to narrow following a recent super tax ruling by the Federal Constitutional Court that went in the government’s favor.
The power sector is also expected to face scrutiny during the review amid recent policy volatility affecting industrial tariffs and residential fixed charges, although circular debt figures remain within targeted limits, officials said.
The IMF Executive Board’s consideration of the reviews would follow completion of staff-level discussions and agreement on policy measures.
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